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The Aussie dollar traded lower against the US dollar and tested the 0.7660 support area. The AUDUSD pair is under bearish pressure, which means more losses cannot be denied in the short term. In Australia, the NAB´s Business Conditions was released by the National Australia Bank. The outcome was around the expectation, as the reading was of 2 unchanged from the last reading. The Chinese consumer price index is also likely to play a catalyst for the pair in the near term. Let us see how the AUDUSD pair trades moving ahead, and whether more losses are feasible or not.
There is a critical bearish trend line formed on the hourly chart of the AUDUSD pair, which is likely to act as a pivot area for the pair in the near term. The hourly RSI is around the extreme levels, so there is a chance of a correction from the current levels. However, the pair is likely to struggle around the highlighted bearish trend line where sellers might take control. A break above the same trend line could call for more upsides in the near term. The 23.6% fib retracement level of the last leg from the 0.7844 high to 0.7660 low is also just above the stated trend line. So, there is a major resistance forming around the 0.7690-0.7710 area.
If AUDUSD pair fails to break higher and moves back lower, then initial support can be seen around the last low of 0.7660.
Overall, one might consider selling rallies in the AUDUSD pair as long as it is trading below the highlighted trend line.